Intellectual Capital, Entrepreneurial Strategy and New Ventures Performance: Mediating Role of Competitive Advantage

Anwar, Muhammad; Khan, Sher Zaman; Khan, Najib Ullah

doi:10.22547/ber/10.1.3

Cited by 72 publications

(99 citation statements)

References 78 publications

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“…Both the cost leadership strategy and differentiation strategy (hereafter referred to as entrepreneurial strategy) were found to be significantly and positively related to new venture performance (Teeratansirikool et al 2013). Especially in emerging economies such as Pakistan, entrepreneurial strategy plays a significant role in the competitiveness and success of newly established ventures (Anwar et al 2018a). Similarly, some other studies also concluded that competitive strategy (entrepreneurial strategy) has a positive and significant impact on the firm's performance (Lechner and Gudmundsson 2014;Acquaah and Agyapong 2015;Sun et al 2016).…”

Section: Competitive Advantagementioning

confidence: 95%

“…In response to this, numerous studies have been conducted in developing and developed countries. In other words, some of the studies have focused on the factors that may cause the failure of enterprises while others have discussed the success, growth, and performance (e.g., Ahlstrom 2010;Yang et al 2018;Anwar et al 2018a). However, the growth and success of newly established ventures are relatively low in emerging economies as compared to more developed, often Western ones.…”

Section: Introductionmentioning

confidence: 99%

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The Role of Entrepreneurial Strategy, Network Ties, Human and Financial Capital in New Venture Performance

Khan

Safdar

et al. 2019

JRFM

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In the current era of globalization and competitive edge, the survival of newly established ventures has become a big challenge. Numerous studies have been carried out to discover factors that are essential for newly initiated ventures but the results are still fragmented. This study focuses on measuring the effect of entrepreneurial strategy, network ties, human capital and financial capital on new venture performance. A structured questionnaire was used to collect data from 196 registered firms located in the emerging market Pakistan. The results indicate that entrepreneurial strategy, network ties and financial capital have a significant positive effect, while human capital showed an insignificant effect on new venture performance. This research recommends owners and managers of new firms build effective entrepreneurial strategies, expand their networks with external bodies (other firms, government and financial institutions) to acquire useful resources that in turn can spur their performance. Further implications are discussed. Policy makers and responsible authorities are advised to encourage and support new ventures which in turn can contribute to GDP and economic development. Practical implications and suggestions are also discussed.

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Section: Competitive Advantagementioning

confidence: 95%

Section: Introductionmentioning

confidence: 99%

The Role of Entrepreneurial Strategy, Network Ties, Human and Financial Capital in New Venture Performance

Khan

Safdar

et al. 2019

JRFM

View full text Add to dashboard Cite

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“…To achieve these objectives (e.g., high profit and a long-term survival), firms invest a massive amount of money in tangible and intangible resources [17]. However, recent studies have pointed out that investment in intangible resources-especially in IC-spurs SCP in emerging firms [4,18]. IC encompasses structural capital, human capital, and relational capital that might give a high return to business firms [19].…”

Section: Intellectual Capital and Sustainable Competitive Performancementioning

confidence: 99%

“…Moreover, Xu and Wang [21] confirmed that all the dimensions of IC-structural capital, human capital, and relational capital-significantly and positively enhance sustainability, financial performance, and economic growth in the business sector. Especially SMEs, due to a lack of resources and capabilities, can acquire a great advantage of IC, as it is considered less risky and a convenient resource [18]. Top managers are required to intensify initiative to encourage the promotion of IC (human capital, structural capital and relational capital) inside organizations to acquire competitive advantage [22].…”

Section: Intellectual Capital and Sustainable Competitive Performancementioning

confidence: 99%

The Role of a Manager’s Intangible Capabilities in Resource Acquisition and Sustainable Competitive Performance

2019

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The answer to the challenging question, “Should one either invest in tangible resources or intangible resources/capabilities?” is still fragmented. In prior studies, more emphasis is given to tangible resources, while intangible resources have comparatively received minor attention, despite their significant role in the success of small and medium enterprises (SMEs). Particularly the role of the intangible skills; intellectual capital, financial literacy (FL), and business experience (BE) in resource acquisition and sustainable competitive performance has missed in prior studies. Grounded on the resource-based view and upper echelon theory, this study examines the role of intellectual capital in sustainable competitive performance with a mediating role of resource acquisition. This research also assesses the moderating role of financial literacy and business experience between intellectual capital and resource acquisition. Data are collected through structured questionnaires from 384 owners/managers of Pakistani SMEs. After analyzing the data through structural equation modeling (SEM), the results indicate that intellectual capital helps managers in acquiring valuable resources, which in turn enhance sustainable competitive performance. Resource acquisition partially mediates the relation between intellectual capital and sustainable competitive performance. Financial literacy is a significant predictor of resource acquisition, but it does not significantly moderate the relation between intellectual capital and sustainable competitive performance. Business experience significantly boosts the acquisition of resources and strengthens the path between intellectual capital and resource acquisition. SMEs should encourage their managers to acquire unique, rare, and immutable external resources in the turbulent markets.

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“…Competitive advantages can be created through innovation, efficiency, quality, and customer responsiveness [19]. In an intense editor@iaeme.com market, competitive advantage is necessary for SMEs operation, especially in the emerging market, to sustain high performance [20].…”

Section: Literature Reviewmentioning

confidence: 99%

Business Performance and Competitive Advantage: Multi Perspective Analysis of Smes in Bali

Sukartini¹,

Kencanawati²,

Lasmini³

2019

IJM

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The aims of this paper are to analyze business performance and competitiveness of SMEs in Bali from the perspective of human resource competency and market orientation. This research was conducted with 100 owners of SMEs of wood craft in Bali. The data were collected through interview, observation, questionnaire, and documentation, then analyzed using the following techniques: (1) descriptive statistic; and (2) structure equation models. The results of the analysis show that: (1) the business performance and competitiveness of SMEs are categorized as fair; (2) Human resource competency has a positive and significant effect on market orientation and business performance of SMEs; (3) business performance has a positive and significant effect on the competitiveness of SMEs; (4) market orientation has a positive and significant effect on the business performance and competitiveness of SMEs. The relevant suggestions for this study are (1) improving HR managerial skills by participating in training; (2) improving product quality by minimizing costs through innovation; (3) Empowering the government to play a role in helping SMEs to open market access.

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Intellectual Capital, Entrepreneurial Strategy and New Ventures Performance: Mediating Role of Competitive Advantage

Abstract: In

Cited by 72 publications

References 78 publications

The Role of Entrepreneurial Strategy, Network Ties, Human and Financial Capital in New Venture Performance

The Role of Entrepreneurial Strategy, Network Ties, Human and Financial Capital in New Venture Performance

The Role of a Manager’s Intangible Capabilities in Resource Acquisition and Sustainable Competitive Performance

Business Performance and Competitive Advantage: Multi Perspective Analysis of Smes in Bali

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